Asda rails at phone price rise

Supermarket giant Asda today said that it is to complain to the telephones regulator about 'unjustifiable' price increases by BT Cellnet and Vodafone on their pre-pay mobile phones.

Asda, which this week started selling pre-pay mobiles from all four British networks at £49.99, said that in a last-minute move BT Cellnet and Vodafone had 'torn up their deals' with the stores chain and unveiled a massive increase in the price they would charge it for phones.

It claimed that BT Cellnet had raised its cost price by 90%, which would mean the lowest price a retailer could charge would be £79.99.

Asda said that BT Cell-net and Vodafone had contacted it within two days of each other and both confirmed in writing that their new prices would apply from the same date - 1 September. It has sent copies of the letter to the regulator Oftel.

Sioned Reed-Thomas, Asda's home and leisure director, said: 'Having turned mobile phones into everyday items, BT Cellnet and Vodafone now want to reintroduce higher charges and put the low-price genie back in the bottle.'